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German economy slows down but performs better than expected


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The German economy recorded a slowdown in 2022, according to preliminary data released on Friday, but performed better than expected as the economy grew 1.9% despite the energy crisis and the situation in Ukraine that weighed on activity.

“The German economy is recovering despite the difficult environment,” the German statistical institute Disstatis said. And before that, according to preliminary estimates, during the last three months of the year, “stagnation” of growth was recorded.

In the fall, the government was looking for growth of just 1.4% in 2022, with GDP declining in the fourth quarter after rising 2.6% in 2021.

“The situation could have been worse,” said ING banking analyst Carsten Pejesky.

The energy crisis in Europe led to the destabilization of the German economic model based, in particular, on gas imports from Russia. The high level of inflation along with the growth of production costs in the industry caused fears of a major economic crisis in the country.

Source: AFP.

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